I turn on the tube what do i see, a whole lot a people cryin' "don't blame me" they point their crooked little fingers at everybody else spend all their time feelin' sorry for them selves victim of this, victim of that your momma's too thin; and your daddy's too fat
get over it, get over it all this whinin' and cryin' and pitchin' a fit get over it, get over it
you say ya haven't been the same since ya had your little crash but you might feel better if they gave you some cash
The Eagles -- Get Over It
As I contemplated the impact of the B of A foreclosure moratorium, the lyrics to the song above kept coming into my mind. Perhaps we should just give these people the houses they are squatting in. That might make them happy.
The squatters and HELOC abusers have already lost their homes, but they are being allowed to squat in the empty shell of their financial lives. They need to move on and get over it.
Shevy got really worked up about it...
Why Would B of A ANNOUNCE that they are halting foreclosures?
"Attention, Attention, everyone considering strategic default, we will not foreclose, you can live in your home for free for the foreseeable future and then rent the same home up the street for 1/2 as much, if and when we get around to foreclosing. By the way, please vote for the politicians that we gave a bunch of money to!" (who cares that your responsible neighbors and grandparents retirements will/are paying for it, the heck with them, our execs need to keep getting bonuses, they are used to it)
They might as well have announced that everyone that is underwater can stop paying their mortgage because they are increasing the time they will allow them to squat and its already pretty long. I understand that B of A is halting foreclosures because of actions of some attorneys, forcing them look at their foreclosure process and make sure they are executing it correctly. However, B of A has a huge staff of lawyers on staff the last I heard, the foreclosure process is not rocket science, and shouldn't they have already been on top of this?
This is highly suspect. Isn't it likely that by announcing to people that they will not foreclose, at least not in the short term, they will encourage those teetering on the brink of foreclosure to strategically default? Won't many take the leap now that they know that B of A has halted foreclosures? Doesn't it make the most sense for those are underwater, will likely be able to live in the home for free for 6+ months and can likely rent the home up the street for about ½ of the cost of paying for their current home.
Moreover, won't this make title companies apprehensive to give title insurance on foreclosures? How many loans and how many millions if not billions of dollars in losses will this create? Is the system so corrupt that the tax payer will pick up this bill? Can anyone think of any good reason why they would ANNOUNCE this? There is only one reason I can come to.
1) Political- Politicians can jump on board and make out like they are coming down on the banks and forcing them to halt foreclosures.
I believe that bankers and politicians believe they are smarter than everyone else, I hope they are wrong. Unfortunately, even if they are I don't see any good alternatives to our currently corrupt political parties. From what I can tell, this will only help the banks because supply was going up and demand was going down bringing prices closer to reasonable levels and since B of A is now likely the largest property owner in the country and they no longer are forced to use mark to market accounting their assets were losing value fast.
I do not know the details behind their Countrywide deal but I believe that it's likely that the taxpayers are picking up a huge tab for this debacle. If they do not slow play this inventory, they don't have to show losses, thus bank execs can keep getting their bonuses, and politicians can take credit for halting foreclosures all the while they will continue to trick Americans into believing delaying foreclosures and creating artificial value in housing is a good thing. In reality it's only good for the banks.
My recommendation; let house prices fall back in line with incomes, of course with artificially low rates they are in most of the country, but what if rates were at 8%? By keeping rates artificially low they are basically guaranteeing low to no appreciation for a long time to come in most of the country and delaying the inevitable in others. If underwater loan owners don't listen to the spin and guilt trip that having to move to a rental. And have not been tricked into believing or allowing a foreclosure to ruin their family, cause divorce, or cause their children massive amounts of stress and force them into a life of juvenile delinquency. If underwater home owners have a purchase money loan, they should let it go, rent, let prices come down and buy a new home for much less after this mess is cleared. If it's not a purchase-money loan speak with an attorney but don't be tricked into being an indentured servant for the bank for the next 20+ years. They already tricked you once; it does not have to happen again. Enough with the games, if people have not been paying for the last 3 months and are underwater by 10's of thousands of dollars it does not matter how or when you foreclose.
Home Purchase Price … $460,000 Home Purchase Date .... 12/5/08
Net Gain (Loss) .......... $103,999 Percent Change .......... 22.6% Annual Appreciation … 13.9%
Cost of Ownership ------------------------------------------------- $599,999 .......... Asking Price $120,000 .......... 20% Down Conventional 4.52% ............... Mortgage Interest Rate $479,999 .......... 30-Year Mortgage $117,536 .......... Income Requirement
$2,438 .......... Monthly Mortgage Payment
$520 .......... Property Tax $0 .......... Special Taxes and Levies (Mello Roos) $50 .......... Homeowners Insurance $65 .......... Homeowners Association Fees ============================================ $3,073 .......... Monthly Cash Outlays
-$407 .......... Tax Savings (% of Interest and Property Tax) -$630 .......... Equity Hidden in Payment $201 .......... Lost Income to Down Payment (net of taxes) $75 .......... Maintenance and Replacement Reserves ============================================ $2,312 .......... Monthly Cost of Ownership
Cash Acquisition Demands ------------------------------------------------------------------------------ $6,000 .......... Furnishing and Move In @1% $6,000 .......... Closing Costs @1% $4,800 ............ Interest Points @1% of Loan $120,000 .......... Down Payment ============================================ $136,800 .......... Total Cash Costs $35,400 ............ Emergency Cash Reserves ============================================ $172,200 .......... Total Savings Needed
Property Details for 4121 OLD MILL St Irvine, CA 92604 ------------------------------------------------------------------------------ Beds: 2 Baths: 2 baths Home size: 1,192 sq ft ($503 / sq ft) Lot Size: 5,000 sq ft Year Built: 1972 Days on Market: 126 Listing Updated: 40447 MLS Number: A10060545 Property Type: Single Family, Residential Community: El Camino Real Tract: 0 ------------------------------------------------------------------------------ LARGE 2 BEDROOM HOME WITH LIVING ROOM,DINING ROOM KITCHEN FAMJLY ROOM WITH COUNTER,WALKOUT TO SIDE .BEAUTIFUL BACKYARD WITH LOTS OF FRUIT TREES.'TILE FLOOR IN LIVING ROOM,DINING ROOM,KITCHEN, FAMILY ROOM,2 BATHROOM. CARPET IN BEDROOMS. VERY BRIGHT HOME. HOUSE FACES WEST.DOUBLE FRONT ATTACHED GARAGE WITH ENTRANCE INTO THE HOUSE.SHOWS VERY GOOD.READY TO MOVE IN.ON A CUL DE SAC.TWO FULL BATHS . COULD BE ADDED ON UPSTAIRS AND BACK AND FRONT.MUST SEE.IT LOOKS LARGER THAN IT IS .MUST SEE TO BELIEVE.BEAUTIFUL BACK YARD. NOTE: OWNER MAY carry a new first mortgage FOR $460,000 at 6% INTEREST FOR 5 YEARS TERM,INTEREST ONLY.PAYMENT,$140,000 DOWN. NO SECONDS. TO BE $2300 PLUS 1/12 TAXES A MONTH.PURCHASE PRICE MUST BE $600,000.bUYERS TO PAY 1% CLOSING COSTS PLUS TRASFER FEES AND RECORDING FESS AND OTHER FEES NECCESARY TO CLOSE,INCLUDING ALL ESCROW FEES AND TITLE. BUYERS MUST HAVE GOOD CREDIT AND PROOF OF DOWNPAYENT MUST BE SUBMITED WITH THE OFFER.FAMILY ROOM CAN BE CONVERTED TO THIRD BEDROOM.
Financial ripoff
Do you follow the financing terms in the description above? This owner -- who is underwater -- wants to sell this home by carrying a pass-through note for what he paid for the house and he wants a $140,000 profit as a cash down payment. Please tell me nobody is stupid enough to take this deal.
0 comments:
Post a Comment
Note: Only a member of this blog may post a comment.